Piteco for Magnolia: financial planning in a television production company

The Finance Department’s need: a Cash Pooling organisational model

Magnolia is an independent television production company that is a leader in the creation, production and adaptation of entertainment formats. The process undertaken with Piteco improved the governance of the company’s financial trends, enabling the Magnolia Treasury to play a preventive and strategic role in value chain management. The Magnolia Finance Department met with Piteco as part of an assessment process and expressed two needs: “As a Treasury, we needed to implement a Cash Pooling organisational model to centralise the liquidity management of the Group companies – at the time there were six – controlled by Magnolia,” stated Donatella Bertuzzi, Magnolia Treasury Manager. “At the same time, we needed to computerise the financial planning process”.”

The project: the Treasury and Financial Planning management solution.

The Zero Balance Cash Pooling service was created by centralising in the Magnolia account the movements recorded in the accounts of its companies, automating the relative intercompany records thanks to the definition of sophisticated search rules capable of identifying the movements originating from the various Group companies when loading and acquiring movements from Remote Banking systems. Thus, Treasury took on a proactive role, and the Cash Flow became an important tool providing a snapshot of outlook cash flows with a high degree of detail, reliability and precision, to enable and optimise the preventive control of company financial trends.

The value added of the Piteco solution

Direct access to the Financial planning functions and the availability of forecast data in the same TMS allowed Magnolia’s Treasury to have greater visibility of its forecast data.